CARRIER (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2020
NOTES TO THE FINANCIAL STATEMENTS
Contributions Normal contributions, both from the members and from the employers, are accounted for on an accruals basis in the month employee contributions are deducted from the payroll.
Employer normal contributions include contributions in respect of salary sacrifice arrangements made available to certain members by the Employers.
Additional voluntary contributions from the members are accounted for on an accruals basis, in the month deducted from the payroll.
Employers’ deficit contributions and contributions towards expenses and PPF levies are accounted for by reference to the schedule of contributions and, if appropriate, on the same basis as the corresponding expense.
Benefits Pensions in payment are accounted for in the period to which they relate.
Where members can choose whether to take their benefits as a full pension or as a lump sum with reduced pension, retirement benefits are accounted for on an accruals basis on the later of the date of retirement and the date the option is exercised.
Other benefits are accounted for on an accruals basis on the date of retirement, death or leaving the Scheme as appropriate.
Transfers to and from other schemes Transfer values represent the capital sums either receivable in respect of members from other pension schemes of previous employers or payable to the pension schemes of new employers for members who have left the Scheme. These are accounted for on an accruals basis, which is normally when cash is paid, or where the Trustee has agreed to accept the liability in advance of receipt of funds from the date of the agreement. Administrative and other expenses Administrative expenses, premiums on term insurance policies and investment management expenses are accounted for on an accruals basis. Investment income and expenditure Income from any pooled investment vehicles which distribute income, is accounted for on an accruals basis on the date stocks are quoted ex-dividend/interest. Income from bonds is accounted for on an accruals basis and includes income bought and sold on purchases and sales of bonds. Other interest on cash and short term deposits and income from other investments are accounted for on an accruals basis. The change in market value of investments during the year comprises all increases and decreases in the market value of investments held at any time during the year, including profits and losses realised on sales of investments and unrealised changes in market value. In the case of pooled investment vehicles which are accumulation funds, where income is reinvested within the fund without issue of further units, change in market value also includes such income. Transaction costs are included in the cost of purchases and sale proceeds. Transaction costs include costs charged directly to the Scheme such as fees, commissions, stamp duty and other fees. Other investment management expenses are accounted for on an accruals basis.
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